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Filing a tax return just got a lot easier for many
small-business owners. A change in IRS regulations recently doubled
the dollar limit on expenses allowable on Schedule C-EZ, a simpler
version of the Schedule C form ("Profit or Loss From
Business"), for the 2004 tax year.

Raised from $2,500 to $5,000, the new limit will enable some
half a million more small businesses to use the simpler form,
reports the IRS. "With the C-EZ, you don't have to itemize
expenses-you can put a single figure for all your expenses up
to $5,000," explains , CPA, certified financial planner and president at Bart
L. Fooden & Associates in Woodbury, New York. He says the form
is significantly easier to prepare. "Insurance interest,
office expenses and rent can all be lumped together. The only
expenses you need to itemize are meals, entertainment and car
expenses."

Expenses, however, aren't the only eligibility consideration
for the form. "It can't be used to report a loss, claim
expenses on an office in the home or [report] depreciation,"
notes Fooden. "You must also be a sole proprietor without any
employees whom you pay regular wages to."

What's more, even when a Schedule C-EZ is permissible, it
isn't always ideal, says Fooden. "If you take a C-EZ to a
bank as part of your application, they'll say, 'Where are
all the details?'" he says. "Banks like to see
itemized expenses. So if you're thinking about a bank loan, you
might be better served with the Schedule C."

24%
of Americans cite financial stability as the definition of the
American Dream.Statistic Source: The National League
of Cities

Among businesses that outsource their customer
service operations,80%
will not actually save any money.Statistic Source: Gartner
Inc.

is a freelance writer in New York City specializing in
business and finance.